Sponsored by George Fox University
Home Archives February 2009 Business bankruptcies increase 67% in 2008

Business bankruptcies increase 67% in 2008

| Print |  Email
Sunday, February 01, 2009

STATEWIDE — Business bankruptcies rose 67% in Oregon in 2008, as the growing financial crisis leaves businesses big and small struggling to stay afloat.


The U.S. Bankruptcy Court, District of Oregon recorded 405 commercial filings, up from 242 the year prior. And barely one month into the new year, bankruptcy and insolvency lawyers in Portland are already seeing an influx of filings.

“There are a number of things coming together to create an unprecedented situation,” says Perkins Coie partner Douglas Pahl. “It doesn’t feel like a normal cycle.”

While filings of each business bankruptcy chapter rose last year, the increase in organizations seeking Chapter 11 protection is especially notable. Chapter 11 filings rose to 61, nearly triple the 23 filings recorded last year. While protection under Chapter 11 is not limited to businesses and can include individual filings, the clerk’s office estimates that around 90% of the 61 are business filings.

While the recession has left few industries unscathed, the real estate and retail sectors were especially hard hit in 2008. Real estate developers including Renaissance Homes and Legend Homes were just a few to go into Chapter 11. Other businesses tied closely to the industry also felt the ripple effects. Contractors, engineers, and even some lawyers took a hit when Oregon’s major real estate developers sought bankruptcy protection.

Industry experts predict that the growing swell in retail business insolvencies could turn into a full-on flood in 2009. Post-holiday profit drops paired with a slowdown in consumer spending will continue to challenge many retailers’ financial viability.

Tightened credit markets are proving especially troublesome to business owners on the verge of bankruptcy and those already entrenched in reorganization or liquidation proceedings. Debtors are finding it nearly impossible to refinance, sell or find outside parties interested in acquiring their businesses. “The credit markets are not there to provide an alternative,” says Pahl.    

NICOLE STORMBERG



Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

More Articles

13 West Coast seafood species now 'sustainable'

News
Tuesday, June 03, 2014

Fishing OrBiz Fishing 0357 ADOBErgbCiting the transition to catch shares management as a key to rebuilding stocks and reducing bycatch, 13 species caught by the West Coast trawl fishery today earned designation from the Marine Stewardship Council (MSC) as sustainable.


Read more...

Creating a culture of compliance

Business tips
Thursday, June 19, 2014
DataBY MONICA ENAND | GUEST CONTRIBUTOR

Nine tips for building habits among employees to respond when needed.


Read more...

The global challenge

News
Friday, June 27, 2014
062714 thumb globalmarketBY JASON NORRIS | OB BLOGGER

Over the last several months we have seen a wave of cross-border acquisitions, primarily U.S.-based companies looking to purchase non-U.S.-based companies. There are a few reasons for this, but the main culprit is the U.S. corporate tax system. The United States has one of the highest corporate tax rates in the world.


Read more...

Who said we should sell in May?

Contributed Blogs
Friday, July 18, 2014
BullMarketBY JASON NORRIS | OB GUEST CONTRIBUTOR

Back in May, we shared a common Wall Street quote about investing, “Sell in May and go away.” Fast forward to July and the most common question we have been getting from clients is, “When is the market pullback going to occur?”


Read more...

Blips and trends in the housing market

News
Thursday, June 26, 2014
062614 thumb realestateBY ERIC FRUTS | OB BLOGGER

Last year, the housing market in Oregon—and the U.S. as a whole—was blasting off. The Case-Shiller index of home prices ended the year 13% higher than at the beginning of the year. But, was last year a blip, or a trend?


Read more...

Attack of the Robin Sages

Contributed Blogs
Monday, July 07, 2014
070714 thumb linkedinfakesBY TOM COX | OB BLOGGER

Named after the 2010 experiment by Thomas Ryan, "Robin Sages" are fake social media profiles designed to encourage linking and divulging valuable information.


Read more...

The Scott Kveton affair

News
Wednesday, July 09, 2014
ScottKvetonBY LINDA BAKER | OB EDITOR

Scott Kveton, the CEO of Urban Airship is taking a leave of absence from the company. As the story continues to unfold, here’s our perspective on a few of the key players.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS